Section 476 | How to work out whether settlor meets condition C

(1)This section applies for the purpose of working out whether a settlor (“S”) in relation to a settlement meets condition C at a time.

(2)If—

(a)the settlement arose on S's death (whether by S's will, on S's intestacy or in any other way), and

(b)immediately before S's death, S was UK resident ... ...,

then S meets condition C from the time of S's death until S ceases to be a settlor in relation to the settlement.

(3)If—

(a)the settlement is not within subsection (2)(a), and

(b)at a time when S made the settlement (or is treated for the purposes of the Income Tax Acts as making the settlement), S was UK resident ... ...,

then S meets condition C from that time until S ceases to be a settlor in relation to the settlement.

(3ZA)In relation to a settlement—

(a)that arose before 6 April 2025 on S’s death, or

(b)that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025,

subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted “or domiciled in the United Kingdom”.

(3A)Section 835BA (deemed domicile) applies for the purposes of subsection (3ZA).

(4)Further, if—

(a)there is a transfer of property in relation to which section 471 applies,

(b)S is a settlor in relation to settlement 2 as a result of that section, and

(c)immediately before the disposal by the trustees of settlement 1, S meets condition C as a settlor in relation to settlement 1 as a result of this section,

then S meets condition C as a settlor in relation to settlement 2 from the time S becomes such a settlor until S ceases to be such a settlor.

(5)“Settlement 1” and “settlement 2” are to be read in accordance with section 470(1).